Steps to perform a PEST analysis
PEST Political Analysis
At this point, the political climate and the degree of government intervention in the economy must be assessed:
Views on trade policy affecting the company;
Industry-specific regulations;
International trade agreements in force;
Government Stability;
Upcoming elections and possible implications of a new political scenario;
Government approach to corporate policy, corporate social responsibility, environmental issues and customer protection legislation;
Other political factors.
PEST Economic Analysis
At this stage, the country's financial environment and economic growth indicators must be analyzed:
Inflation rate and its influence;
Stability or growth of exchange rates;
Interest rate and purchasing power;
Unemployment rate and skilled labor management;
Decline or growth of the economy;
Ease or difficulty of accessing credit;
Other economic factors.
Social PEST Analysis
It is time to understand the cultural and demographic aspects of the society in which the company operates:
Population growth rate;
Birth rate and average life expectancy;
Age distribution of the population;
Literacy levels;
Consumption habits;
Social and religious beliefs;
Population lifestyle;
Social market trends;
Other sociocultural factors.
PEST Technological Analysis
This factor helps in the process of analyzing existing technological changes in the market:
New technologies available and relevant to the company;
Software that allows you to make your business profitable;
Automation that makes it possible to streamline company procedures;
Other technological factors.
